71) Refer to Figure 5-5. With insurance and a third-party payer system, what is the amount of the deadweight loss? A) $0 B) $2,500 C) $5,000 D) $24,000   72) If an employee receives health insurance through his or her employer, the employer A) still withholds contributions for Medicare and Medicaid from the employee’s paycheck. B) still withholds contributions for Medicare, but not […]

  21) Refer to Figure 10-9. If the government regulates Erickson Power Company so that the firm can earn a normal profit, the price would be set at ________ and the output level is ________. A) P1, Q4 B) P2, Q3 C) P2, Q2 D) P3, Q2 22) Refer to Figure 10-9. What is the economically efficient output level and what is the price at […]

  1) Suppose the Canadian economy is facing an inflationary output gap (Y > Y*). In our macro model, such an output gap can explain changes in which of the following variables? A) the average level of wages B) the level of wages in the forestry sector relative to the mining sector C) the level of wages in a high-growth region of the country relative […]

  21) Because there is a ________ relationship between the price level and the quantity of real GDP supplied, the aggregate supply curve is ________ curve. A) negative; an upward-sloping B) positive; a downward-sloping C) positive; an upward-sloping D) negative; a downward-sloping E) positive; a vertical 22) The aggregate supply curve is a(n) ________ curve because it represents the relationship between price level and the […]

  39) According to comparative advantage, trade between two countries allows ________ of the trading countries to allocate its resources most efficiently. A) only the smaller B) only the larger C) neither D) each   40) When countries specialize in producing those goods in which they have a comparative advantage, they ________ their combined output and allocate their resources ________ efficiently. A) maximize; less B) […]

  7.2   Price Floors   1) A price floor is A) the highest possible legal price that can be charged for a good or service. B) usually equal to the equilibrium price established before the government imposed the price floor. C) the lowest legal price at which a good or service can be traded. D) a legal price of zero that can be charged for […]

  41.              Performance appraisal is used for all of the following except: a.evaluating employee work behavior b.making promotion and other reward decisions c.identifying employee developmental needs d.selecting persons from a pool of job applicants 42.              The major function(s) of performance appraisal include: a.to provide feedback on performance b.to identify developmental needs c.to make promotion and reward decisions d.all of these 43.              Performance feedback is more […]

1. Which of the following statements regarding financial statement analysis is true?  A. It will show how a company is guaranteed to perform in the future. B. It should not be relied upon as an indicator of future performance. C. It should be performed by only managers and creditors. D. It provides supplemental information not provided directly by the financial statements.   2. Ratio analysis is least likely to indicate:  A. past […]

  61.Thereserverequirementis4percent,banksholdnoexcessreservesandpeopleholdnocurrency.IftheFedsells$10,000worthofbonds,whathappenstothemoneysupply? a.itincreasesby$250,000 b.itincreasesby$200,000 c.itdecreasesby$200,000 d.itdecreasesby$250,000 62.Ifthereserveratiois5percent,banksdonotholdexcessreserves,andpeopledonotholdcurrency,thenwhentheFedpurchases$20millionworthofgovernmentbonds,bankreserves a.increaseby$20millionandthemoneysupplyeventuallyincreasesby$400million. b.decreaseby$20millionandthemoneysupplyeventuallydecreasesby$400million. c.increaseby$20millionandthemoneysupplyeventuallyincreasesby$100million. d.decreaseby$20millionandthemoneysupplyeventuallydecreasesby$100million. 63.Ifthereserveratiois15percent,andbanksdonotholdexcessreserves,andpeopleholdonlydepositsandnocurrency,thenwhentheFedsells$25.5millionworthofbondstothepublic,bankreserves a.increaseby$25.5millionandthemoneysupplyeventuallyincreasesby$382.5million. b.increaseby$25.5millionandthemoneysupplyeventuallyincreasesby$170million. c.decreaseby$25.5millionandthemoneysupplyeventuallydecreasesby$382.5million. d.decreaseby$25.5millionandthemoneysupplyeventuallydecreasesby$170million. 64.Thereserveratiois10percent,banksdonotholdexcessreserves,andpeopleholdonlydepositsandnocurrency.WhentheFedsells$20millionworthofbondstothepublic,bankreserves a.increaseby$20millionandthemoneysupplyeventuallyincreasesby$20million. b.increaseby$20millionandthemoneysupplyeventuallyincreasesby$200million. c.decreaseby$2millionandthemoneysupplyeventuallyincreasesby$20million. d.decreaseby$20millionandthemoneysupplyeventuallydecreasesby$200million. 65.Thebankingsystemcurrentlyhas$10billionofreserves,noneofwhichareexcess.Peopleholdonlydepositsandnocurrency,andthereserverequirementis10percent.IftheFedraisesthereserverequirementto12.5percentandatthesametimebuys$1billionworthofbonds,thenbyhowmuchdoesthemoneysupplychange? a.Itfallsby$12billion. b.Itfallsby$19billion. c.Itfallsby$21billion. d.Noneoftheaboveiscorrect. 66.Thebankingsystemcurrentlyhas$50billionofreserves,noneofwhichareexcess.Peopleholdonlydepositsandnocurrency,andthereserverequirementis10percent.IftheFedraisesthereserverequirementto12.5percentandatthesametimesells$10billionworthofbonds,thenbyhowmuchdoesthemoneysupplychange? a.Itfallsby$20billion. b.Itfallsby$110billion. c.Itfallsby$180billion. d.Noneoftheaboveiscorrect. 67.Thebankingsystemcurrentlyhas$100billionofreserves,noneofwhichareexcess.Peopleholdonlydepositsandnocurrency,andthereserverequirementis10percent.IftheFedlowersthereserverequirementto5percentandatthesametimebuys$10billionworthofbonds,thenbyhowmuchdoesthemoneysupplychange? a.Itrisesby$200billion. b.Itrisesby$800billion. c.Itrisesby$1,200billion. d.Noneoftheaboveiscorrect. 68.Thebankingsystemcurrentlyhas$200billionofreserves,noneofwhichareexcess.Peopleholdonlydepositsandnocurrency,andthereserverequirementis4percent.IftheFedraisesthereserverequirementto10percentandatthesametimebuys$50billionworthofbonds,thenbyhowmuchdoesthemoneysupplychange? a.Itrisesby$600billion. b.Itrisesby$125billion. c.Itfallsby$2,500billion. d.Noneoftheaboveiscorrect. 69.Ifthepublicdecidestoholdmorecurrencyandfewerdepositsinbanks,bankreserves a.decreaseandthemoneysupplyeventuallydecreases. b.decreasebutthemoneysupplydoesnotchange. c.increaseandthemoneysupplyeventuallyincreases. d.increasebutthemoneysupplydoesnotchange. 70.Ifthepublicdecidestoholdlesscurrencyandmoredepositsinbanks,bankreserves a.decreaseandthemoneysupplyeventuallydecreases. b.decreasebutthemoneysupplydoesnotchange. c.increaseandthemoneysupplyeventuallyincreases. d.increasebutthemoneysupplydoesnotchange.    

  61) A single-price monopoly has marginal cost of $23 and marginal revenue of $28. Which of the following is definitely correct? A) It is maximizing profit. B) To increase profit, it should produce less. C) To increase profit, it should produce more. D) It should shut down. E) It is making an economic profit.   62) A profit-maximizing output for a single-price monopoly is […]